Is it better to buy or lease cool containers? This is the question many operations and ULD fleet managers find themselves asking, and it’s why VRR decided to develop its unique Buy vs Lease Calculator. Launched in August 2021, the response so far to this free, online tool has been a big thumbs up. Here’s why …
Simplifying the decision-making process for ULD managers
“It’s common in the air cargo industry to lease cool containers. And for many companies, there’s a good business case for doing so. For example, when there’s a temporary peak in demand,” says VRR’s Sales Manager Ben Lakerveld. “But there comes a point when it makes more sense to buy your cool containers. Trouble is, it can be tricky to work out when you’re at that point.”
The specially designed calculator simplifies this important decision-making process for managers. It does this by comparing all the costs typically involved in leasing a RKN or RAP container, two of the most popular cool containers on the market, with the purchase price.
“We’ve tried to make it as easy as possible to use, which is why there are only four data fields: initial purchase volume, costs per lease period, trips per lease period, and additional fees per lease period. Most ULD managers have this information at their fingertips.”
Considering the total cost of owning or leasing cool containers
As soon as the information is entered, the calculator comes back immediately with a cost per shipment per container. It also shows the breakeven point (i.e. the number of shipments needed per container before it’s cheaper to buy than lease).
“By looking at the total cost of ownership, we’re able to show the point at which buying is a better option for a company. Of course, the calculator assumes that cost is the only decision factor, so with every result we stress that there are always other business factors to consider when deciding whether to buy or lease.”
The Buy vs Lease Calculator is completely free to use and can be found on VRR’s website. After the calculation is made, users can request a more detailed report that explains the breakeven calculation and lists all the factors that companies need to consider before they order their next cool container.
VRR is keen to hear from anyone who’s found the calculator useful. Just send an email to email@example.com.